Life Insurance In Retirement, Who Needs It|You Do

Life insurance in retirement

You’re Retiring, Why Would You Ever Need Life Insurance?

What Does Life Insurance Provide You?

  • Guarantees, Peace, Protection

Insurance products protect you from the unknown.  Some life insurance products provide guaranteed payouts.   All life insurance products provide you peace of mind and protection.

Guarantees|Avoid Outliving Your Savings

The most important reason for needing life insurance before retirement is if you guess wrong.

If you estimate the amount of retirement income you would need at retirement by guessing instead of using a retirement calculator for a more precise figure, you just may need the guaranteed payout offered in a life insurance policy.

To avoid outliving your retirement income, you need a cash value life insurance policy.

Life insurance in retirement is useful especially if you miscalculate your retirement money with respect to your number of retirement years
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You can rest easy knowing that if anything happened to you, your family will be taken care of by the life insurance death benefit.


Nobody can predict the future. Your life insurance policy protects you from that unknown.   If you get sick, you can take a loan out against the cash value of the policy.   A term life insurance policy offers a death benefit only so does not offer loans.  You can take a loan out with a cash value policy.

  • Do Not Get Too Comfortable

You may think you’re covered because you have a life insurance policy at work.   You may think that your life insurance needs are met because you have a policy at work; however, most life insurance policies from your employer stop when you stop working.

The best way to secure your financial future is to buy a separate life insurance policy outside of work.

When Should You Buy Your Life Insurance?

  • One More Advantage Youth Has

Life insurance in retirement and while youngThe best time that you can buy life insurance is when you are young; your 20’s, 30’s and 40’s.  At those ages you are young and healthy so can secure more insurance coverage for less money.

So if you are in your 20’s, 30’s or 40’s and feel too young to think about retirement and life insurance; do yourself a favor, buy as much life insurance as you possibly can afford.

  • It’s Cheaper|Save Money, Buy Young

When you are young, life insurance is cheap plus time is on your side.  When you are in your twenties or thirties you will have over forty years until you reach retirement age.  So you will have more time to accumulate cash value; therefore by the time you reach retirement you will accumulate more cash value.

How You Can Use Your Life Insurance?

For Retirement Income

Your life insurance will protect any retirement income gap you may have.   If you did not invest enough money into your retirement plans or the growth did not reach the levels you expected, you can use the cash value in your life insurance policy as a source of income.

To Pay Down Debt

It is a bad financial move to enter retirement deep in debt; however if you find yourself in that situation, the cash value built up in your life insurance policy can help to pay off any outstanding debt that you may have.

Estate Taxes

One of the best ways to pay for estate taxes is with the cash value of a life insurance policy.

As An Inheritance

Life insurance cash value is often passed onto heirs, usually tax-free.   The growth of the cash value may be taxed, however the death benefit of the life policy is generally not.

Thinking about retirement gives you goosebumps.  If you are not protected,  have no guarantee if you guessed wrong about how much money it will take to retire, those goosebumps will turn into the shakes.   Avoid it all by buying some life insurance to boost your retirement plans.


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